In short
- The Guardian says SIS shareholders, including Ladbrokes, William Hill and Done, received at least £37m in dividends since the Santeda deal, including £30m in 2023.
- The Guardian notes Ladbrokes owns 23% of SIS and received £8.5m in payouts over the period, while William Hill received more than £7m.
What happened
The Casino Secrets leak revealed that Sports Information Services (SIS), part-owned by Ladbrokes, William Hill, and Betfred owner Fred Done, signed a contract in 2022 with Santeda, an offshore casino network accused of illegally targeting UK gamblers. SIS provided Santeda with live betting content and data, receiving a percentage of revenues from losing bets placed via Santeda’s brands.
SIS shareholders, including Ladbrokes, William Hill, and Done, received at least £37m in dividends since the deal, with £30m paid out in 2023. The contract does not permit SIS data use in the UK, but leaked files suggest Santeda websites targeted UK customers. Industry sources claim the bookmakers were unaware of the deal due to controls preventing access to sensitive information.
While the UK’s biggest gambling firms have been warning about the risks of growing the illicit market if the government increases tax and regulation, the very same firms are profiting from it.
In numbers
- £37m Dividends received by SIS shareholders since Santeda deal
- £30m Dividends paid out in 2023
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What compliance teams should check
- Review SIS’s contract terms with Santeda, especially regarding data use and revenue sharing.
- Audit dividend payments to Ladbrokes, William Hill, and Fred Done since 2022 for links to offshore casino revenues.
- Verify compliance with Curaçao licence restrictions and ensure SIS data is not used to target UK customers.
Why it matters
This story highlights the risk of indirect exposure to illicit markets through third-party deals, even when controls are in place. Compliance officers must scrutinize relationships with content providers and ensure that contractual terms are enforced, especially regarding jurisdictional restrictions and regulatory licences. The significant financial flows from offshore casino operations underscore the need for robust oversight to prevent reputational and regulatory risks, particularly when firms publicly warn against the dangers of the illicit market.
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